Amber Energy Ltd Net Income jumped on 129% in 2015 and EBITDA Margin surged on 24.4 pp from 11.7% to 36.1%
18/03/2016 • About Amber Energy Ltd (
$90) • By InTwits
Amber Energy Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Amber Energy Ltd is a company in decline: 2015 revenue growth was -56.4%, 5 years revenue CAGR was -9.8%
- EBITDA Margin is quite volatile: 36.1% in 2015, 11.7% in 2014, 14.5% in 2013, 17.8% in 2012, 17.7% in 2011
- Amber Energy Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 24.1%. At the same time it's a lot of higher than industry average of 4.1%.
- CAPEX is quite volatile: 28.8 in 2015, 115 in 2014, 187 in 2013, 379 in 2012, 97.8 in 2011
- The company has business model with low profitability: ROIC is at 8.6%
- It operates with high leverage: Net Debt/EBITDA is 5.2x while industry average is -0.5x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Amber Energy Ltd ($90) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 720.4 | 614.4 | 745.0 | 894.3 | 389.6 | -56.4% |
| SG&A | | | | 26.0 | 24.9 | -4.4% |
| EBITDA | 127.8 | 109.5 | 108.0 | 105.0 | 140.8 | 34.1% |
| Net Income | 36.0 | 19.5 | 15.6 | -148.9 | 43.7 | -129.3% |
Balance Sheet
|
|---|
| Cash | 168.7 | 155.2 | 60.2 | 148.5 | 150.0 | 1.0% |
| Short Term Debt | 244.0 | 271.7 | 220.0 | 305.4 | 224.9 | -26.4% |
| Long Term Debt | 310.8 | 520.9 | 528.8 | 613.4 | 653.4 | 6.5% |
Cash flow
|
|---|
| Capex | 97.8 | 379.1 | 186.9 | 114.6 | 28.8 | -74.9% |
Ratios
|
|---|
| Revenue growth | 10.1% | -14.7% | 21.2% | 20.1% | -56.4% | |
| EBITDA growth | -2.3% | -14.3% | -1.3% | -2.8% | 34.1% | |
| EBITDA Margin | 17.7% | 17.8% | 14.5% | 11.7% | 36.1% | 24.4% |
| Net Income Margin | 5.0% | 3.2% | 2.1% | -16.6% | 11.2% | 27.9% |
| SG&A, % of revenue | | | | 2.9% | 6.4% | 3.5% |
| CAPEX, % of revenue | 13.6% | 61.7% | 25.1% | 12.8% | 7.4% | -5.4% |
| ROIC | 7.6% | 5.4% | 4.6% | 3.6% | 8.6% | 5.0% |
| ROE | 7.0% | 3.6% | 2.8% | -31.1% | 10.0% | 41.0% |
| Net Debt/EBITDA | 3.0x | 5.8x | 6.4x | 7.3x | 5.2x | -2.2x |
Revenue and profitability
Amber Energy Ltd's Revenue dropped on 56.4% in 2015. Despite revenue decline the EBITDA margin expanded. EBITDA Margin jumped on 24.4 pp from 11.7% to 36.1% in 2015.
SG&A as a % of Revenue increased on 3.5 pp from 2.9% to 6.4% in 2015.
Net Income marign surged on 27.9 pp from -16.6% to 11.2% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 7.4%. Amber Energy Ltd's CAPEX/Revenue dropped on 54.3 pp from 61.7% in 2012 to 7.4% in 2015. For the last three years the average CAPEX/Revenue was 15.1%.
Return on investment
The company operates at low ROIC (8.58%) and ROE (10.00%). ROIC increased on 5.0 pp from 3.6% to 8.6% in 2015. ROE jumped on 41.0 pp from -31.1% to 10.0% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 5.2x and Debt / EBITDA is 6.2x. Net Debt / EBITDA dropped on 2.2x from 7.3x to 5.2x in 2015. Debt decreased on 4.4% in 2015 while cash increased slightly on 1.0% in 2015.
Appendix 1: Peers in Electric
Below you can find Amber Energy Ltd benchmarking vs. other companies in Electric industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
Top companies by Revenue growth, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Tianjin Development Hldgs Ltd ($882) | 9.1% | 10.6% | 27.3% | 37.6% | |
| CGN Meiya Power Holdings Co Ltd ($1811) | | 23.4% | 11.2% | 30.8% | -16.5% |
| Enerchina Holdings Ltd ($622) | | -15.4% | 6.8% | 28.5% | -3.5% |
| CGN Power Co Ltd ($1816) | | 10.7% | -1.2% | 19.3% | 12.3% |
| Huadian Power International Corp Ltd ($1071) | 20.1% | 8.8% | 11.8% | 15.1% | |
| |
|---|
| Median (16 companies) | 18.5% | 8.8% | 11.3% | 4.8% | -3.5% |
|---|
| Amber Energy Ltd ($90) | | -14.7% | 21.2% | 20.1% | -56.4% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Power Assets Holdings Ltd ($6) | 60.5% | 60.0% | 63.5% | 85.6% | 99.4% |
| China Power New Energy Development Co Ltd ($735) | 57.1% | 73.3% | 70.8% | 72.0% | |
| HK Electric Investments & HK Electric Investments Ltd ($2638) | 60.5% | 60.1% | 58.6% | 54.0% | 53.7% |
| CGN Power Co Ltd ($1816) | 48.3% | 46.5% | 46.9% | 48.6% | 47.9% |
| Huadian Power International Corp Ltd ($1071) | 8.9% | | | 27.1% | |
| |
|---|
| Median (8 companies) | 48.3% | 46.5% | 52.8% | 37.9% | 53.7% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Power Assets Holdings Ltd ($6) | 64.6% | 66.2% | 68.0% | 2,533.1% | 71.2% |
| Huaneng Renewables Corp Ltd ($958) | 110.2% | 94.0% | 80.5% | 91.3% | 93.1% |
| China Datang Corp Renewable Power Co Ltd ($1798) | 100.2% | 90.5% | 82.8% | 87.0% | |
| HK Electric Investments & HK Electric Investments Ltd ($2638) | 72.8% | 72.6% | 77.6% | 73.3% | 71.7% |
| CGN Power Co Ltd ($1816) | 64.2% | 66.0% | 62.6% | 60.5% | 59.4% |
| |
|---|
| Median (16 companies) | 25.3% | 30.3% | 36.4% | 38.2% | 59.4% |
|---|
| Amber Energy Ltd ($90) | 17.7% | 17.8% | 14.5% | 11.7% | 36.1% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Huaneng Renewables Corp Ltd ($958) | 240.9% | 163.4% | 124.0% | 217.8% | 171.9% |
| China Power New Energy Development Co Ltd ($735) | 21.5% | 82.2% | 80.1% | 119.5% | |
| China Datang Corp Renewable Power Co Ltd ($1798) | 273.4% | 157.1% | 81.7% | 106.3% | |
| CGN Power Co Ltd ($1816) | 78.4% | 47.5% | 57.2% | 94.5% | 50.0% |
| Huadian Fuxin Energy Corp Ltd ($816) | 78.6% | 62.2% | 54.3% | 91.8% | |
| |
|---|
| Median (16 companies) | 24.3% | 26.2% | 28.3% | 18.5% | 20.0% |
|---|
| Amber Energy Ltd ($90) | 13.6% | 61.7% | 25.1% | 12.8% | 7.4% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Power Assets Holdings Ltd ($6) | 5.4% | 5.5% | 6.1% | 46.5% | 0.7% |
| Huaneng Power International Inc ($902) | 4.0% | 7.3% | 10.3% | 11.3% | |
| Huadian Power International Corp Ltd ($1071) | 2.7% | 5.0% | 8.4% | 10.4% | |
| CLP Holdings Ltd ($2) | 7.8% | 7.0% | 4.8% | 8.5% | 12.8% |
| China Resources Power Holdings Co Ltd ($836) | 5.9% | 7.7% | 9.7% | 8.0% | |
| |
|---|
| Median (16 companies) | 4.6% | 5.2% | 6.8% | 6.7% | 5.1% |
|---|
| Amber Energy Ltd ($90) | 7.6% | 5.4% | 4.6% | 3.6% | 8.6% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Datang Corp Renewable Power Co Ltd ($1798) | 8.1x | 9.1x | 8.2x | 8.7x | |
| CGN Power Co Ltd ($1816) | 4.7x | 6.5x | 6.7x | 7.8x | 8.4x |
| Huaneng Renewables Corp Ltd ($958) | 6.0x | 7.7x | 6.6x | 7.3x | 7.1x |
| Huadian Fuxin Energy Corp Ltd ($816) | 9.3x | 6.9x | 6.2x | 6.5x | |
| China Power New Energy Development Co Ltd ($735) | 5.9x | 4.8x | 5.5x | 6.4x | |
| |
|---|
| Median (15 companies) | 5.9x | 5.6x | 5.5x | 4.6x | 6.1x |
|---|
| Amber Energy Ltd ($90) | 3.0x | 5.8x | 6.4x | 7.3x | 5.2x |
